Futures put option gaap amortization of premium kwik

Futures put option gaap amortization of premium kwik

FASB: Embedded Derivatives: Accounting for Remarketable PutBonds Ov Implementation Group Statement 133 Implementation Issue No. An option premium may also refer to the current price of any specific option contract that has yet to expire. In effect, the net result of this method of accounting and the one shown for hedging activity would be the same.

The underlying is usually either an exchange traded stock or a commodity. Note that an option gives the buyer the right to amortisation or sell the underlying contract at a predetermined price. The specific price at which the underlying can be bought or sold is referred to as the strike price oof exercise price of the option.Options only have a limited life-span. In the above definition of an option the buyer of an option can exercise the right within a specified time period.

The exercise period of the option specifies when the option expires and can no longer be traded. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, futufes try using another browser such as Google Chrome or Mozilla Firefox.